HomeMy WebLinkAbout20130924final_order_no_32896.pdfOffice of the Secretary
Service Date
September 24,2013
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF INTERMOUNTAIN GAS COMPANY )CASE NO.INT-G-13-06
FOR AUTHORITY TO ISSUE AND SELL )
SECURITIES.)ORDER NO.32896
_________________________________________________________________________________
)
On August 29,2013,Intermountain Gas Company (the “Company”),a subsidiary of
MDU Resources Group,Inc.,applied to the Commission under Idaho Code §61-901,ci seq.
for authority to issue Unsecured Notes,not to exceed $50,000,000,split evenly for periods of 12
and 15 years.Having fully considered the Application,the Commission enters this Order
granting it as follows.
THE APPLICATION
The Company asks for authority to issue and sell $50,000,000 of unsecured debt
securities.The proposed issuance will be directly placed in two tranches with the Teachers
Insurance and Annuity Association of American.The Company anticipates that the two tranches
will be $25 million each with one term being 12 years and the other term being 15 years.The
interest rate will be set at the time of issuance based on 10-year Treasury rates plus a basis point
adder of about 140-145 for the 12-year issuance and about 165-170 for the 15-year issuance.
The Company says it will use net proceeds from the sale of the unsecured notes to repay any
remaining amounts outstanding on the Company’s Revolving Credit Agreement;provide for
capital expenditures on its facilities;provide working capital;and for general corporate purposes.
FINDINGS OF FACT AND
CONCLUSIONS OF LAW
The Company is an Idaho corporation with its office and principal place of business
in Boise,Idaho.It is a natural gas public utility that owns and operates pipelines,a liquefied
natural gas storage facility,distribution mains,services,meters and regulators,and general plant
and equipment.It is a gas corporation and public utility as defined in Idaho Code §§61-117 and
61-129.
The Commission has jurisdiction over the Application under Idaho Code §6 1-901,
ci seq.We find that the proposed transaction is in the public interest and a formal hearing on this
matter is not required.We further find that the proposed issuance is for a lawful purpose and is
ORDER NO.32896 1
within the Company’s corporate powers,that the Application reasonably conforms to Rules 141
through 150 of the Commission’s Rules of Procedure,IDAPA 31.01.01.141-150,and that the
Company has paid all fees due under Idaho Code §61-905.Accordingly,we find that the
Application should be approved and the proposed financing should be allowed.
The Commission’s Order approving the proposed financing and the general purposes
to which the proceeds may be put is not a determination that the Commission approves of the
particular use to which these funds will be put.The Order also is not a Commission
determinationlapproval of the type of financing or the related costs for ratemaking purposes.
The Commission does not have before it for determination,and so does not determine,the effect
of the proposed transaction on rates the Company will charge for natural gas service.
ORDER
IT IS HEREBY ORDERED that the Company’s Application for authority to issue and
sell $50,000,000 of unsecured debt securities is granted.
IT IS FURTHER ORDERED that the Company must file all final debt and pricing
documents with the Commission.
IT IS FURTHER ORDERED that the foregoing authorization is without prejudice to
the regulatory authority of the Commission with respect to rates,utility capital structure,service
accounts,valuation,estimates for determination of cost or any other matter which may come
before this Commission pursuant to its jurisdiction and authority as provided by law.
IT IS FURTHER ORDERED that nothing in this Order and no provisions of Chapter 9.
Title 61,Idaho Code,or any act or deed done or performed in connection therewith shall be
construed to obligate the State of Idaho to pay or guarantee in any manner whatsoever any security
authorized,issued,assumed or guaranteed under the provisions of Chapter 9,Title 61,Idaho Code.
IT IS FURTHER ORDERED that issuance of this Order does not constitute acceptance
of the Company’s exhibits or other material accompanying the Application for any purpose other
than the issuance of this Order.
THIS IS A FINAL ORDER.Any person interested in this Order may petition for
reconsideration within twenty-one (21)days of the service date of this Order.Within seven (7)
days afier any person has petitioned for reconsideration,any other person may cross-petition for
reconsideration.See Idaho Code §6 1-626.
ORDER NO.32896 2
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of September 2013.
ATTEST:
/4
RSHA H.SMITH,COMMISSIONER
Jan D.Jewell!,
Cemmission Secretary
O:INT-G-I 3-O6kk
MACK A.COMMISSIONER
ORDER NO.32896